Staff Writer
Diversified group Innscor Africa Limited now holds a 27 percent stake in Tanganda Tea Company Limited after underwriting an US$8 million rights offer through its beverage holding entity, Rutanhi Beverages Limited.
The transaction is according to Innscor is aimed at aimed at unlocking value for both the business and Zimbabwe’s agricultural sector.
Commenting on the group’s half-year financial results to December 31, 2025, chairman Addington Chinake said the investment presented a compelling strategic opportunity with long-term upside.
“Shareholders will have noted that the Group, through its beverage holding entity, Rutanhi Beverages Limited, recently underwrote an US$8 million rights offer which was undertaken by Tanganda following approval by Tanganda’s shareholders,” he said.
“The transaction represents an attractive strategic opportunity, and the Group believes it can add considerable value to the Tanganda entity and Tanganda shareholders, while also contributing to the continued development of Zimbabwe’s agricultural sector and ensuring the long-term preservation and sustainable growth of one of Zimbabwe’s most iconic brands.”
Tanganda, an agribusiness firm producing tea, coffee, avocados, macadamia nuts and bottled water, sought to raise fresh capital to stabilise its balance sheet, address a deepening working capital deficit and fund key capital projects.
The company said the capital raise was necessitated by persistent cash flow pressures dating back to the Covid-19 pandemic, which resulted in a deficit of approximately US$6.36 million. Management had warned that failure to resolve the liquidity strain could affect its ability to meet obligations, sustain operations and pursue growth opportunities.
To address these challenges, Tanganda launched a renounceable rights offer of 263,821,324 new ordinary shares at a subscription price of US$0.0303 per share. Shareholders were entitled to one new share for every 0.9896 shares held as at February 23, 2026, with payments made in US dollars.
Proceeds from the offer are expected to support working capital requirements, including procurement of packaging materials and inputs for tea and bottled water production, as well as servicing obligations to key suppliers of fertilisers, chemicals and fuel.
Part of the funding will also go towards replacing the water bottling plant, refurbishing infrastructure at Tingamira Estate and connecting three existing solar plants at Ratelshoek, Jersey and Tingamira estates to the national grid.
Innscor Africa, a focused group of light manufacturing businesses with integrated agricultural operations, has invested significantly in capacity expansion, automation and infrastructure in recent years. Between 2022 and 2023 alone, the group channelled over US$127 million into projects including automated bakery lines, snacks and biscuit plants, pasta production and solar energy installations.
